By Tony Hallett, 4 December 2003 08:35
NEWS The third-generation mobile operations of conglomerate Hutchison Whampoa could need an extra €2bn in funding following well-publicised handset delays.
The inability to serve demand - principally in Italy and the UK where previous targets of 2 million customers by year's end will be missed - will mean lower than expected revenues and the need to once again turn to the Hong Kong-based parent company, according to Frank Sixt, FD at Hutchison Whampoa.
The revelation came in an interview with the FT and would mean total 3G spending by the company edge over €20bn.
Hutchison Whampoa is owned by billionaire Li Ka-shing and has 3G operations in Austria, Sweden and Australia besides Italy and the UK.
"Because we are coming out of this year with a lower number of customers and therefore a lower run rate of revenues than we would have wished... [this] could increase the peak funding by €1.5bn to €2bn," Sixt told the newspaper.
NEC, one of 3's existing suppliers, has failed to ship a promised million extra handsets by year's end. The delay has been put down to software problems.
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